BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 537
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 537 (Arambula)
          As Amended  August 18, 2010
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |66-3 |(January 27,    |SENATE: |23-12|(August 23,    |
          |           |     |2010)           |        |     |2010)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    AGRI.

          SUMMARY  :  Authorizes a group or association of active produce  
          sellers in a flea market farmer's market or Certified Farmers'  
          Market (CFM) to act as a Food and Nutrition Service (FNS) agent  
          to initiate a system for acceptance of electronic benefit  
          transfer (EBT) for sellers of produce; requires market operators  
          to accommodate the FNS group or association while limiting  
          activities to only EBT activities; exempts current or subsequent  
          EBT operating systems; and, specifies that this does not mandate  
          a market itself to create, operate or maintain an EBT system.

           The Senate amendments  delete the authority for the State  
          Department of Social Services (DSS) to designate or assign an  
          organization to operate an EBT system in a market on behalf of  
          the produce sellers and recasts authority to interested  
          collective groups or associations of produce sellers actively  
          participating in produce sells in the market.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, estimates of one-time costs of upwards of $330,000  
          General Fund and $563,000 Federal Funds for the purchase of the  
          EBT devices.

           COMMENTS  :  According to the author, when the federal government  
          switched from paper food stamps to EBT, access to CFMs became  
          non-existent to individuals and families receiving public  
          assistance.  AB 537 attempts to reestablish that access by  
          authorizing CFMs to create their own EBT program, or by having  
          existing venders within a market to establish such a program.  

          Several welfare, hunger, and health advocates have become  








                                                                  AB 537
                                                                  Page  2

          involved in outreach to farmers and community markets trying to  
          assist low income families with greater access to fruits and  
          vegetables.  Supporters state that access to fresh produce is  
          important, and should be available to everyone, especially low  
          income families, as fresh products lead to healthier diets and  
          improved health.  AB 537 will increase such access to  
          California-grown products purchased directly from California  
          farmers.
           

          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 


                                                               FN: 0006342